Odfjell Drilling
Preparing the company for growth – from an IT perspective
Mr Tor Tjeldnes, CIO Odfjell [email protected]
Contents
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• About Odfjell Drilling
• Key issues for IT in Odfjell Drilling
• Collaboration – Integrated Operations
• Project Global Standard – implementing IFS and standardizing business processes
– Background
– Evaluation process
– Implementation project – strategy and design principles
– Process & Organization
• Way forward
3
Odfjell Drilling
With operations worldwide and over 40 years of international drilling experience, Odfjell Drilling is an established industry leader and trusted partner for many of the world’s most respected energy businesses. We are proud to be chosen for our experience and expertise.
• An integrated drilling, well service and engineering company with strong international focus and growth
• World-wide operations, engineering and new build project management
• 40 years' experience
• Turnover of approx. USD 1.1 billion (2012)
• 5.7 billion USD contract backlog
• Operations in more than 20 countries
• 50 nationalities are represented among our 3,200 employees
This is Odfjell Drilling
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Business areas
MOBILE UNITS
• Deepsea Atlantic
• Deepsea Bergen
• Deepsea Stavanger
• Deepsea Aberdeen
• Deepsea Metro1
• Deepsea Metro 2
• Island Innovator
• Dalian Developer
PLATFORM DRILLING
• Statoil Norway
• Wintershall Norway
• BP UK
• Talisman Energy UK
• Taqa UK
Our four specialist business areas provide segment-leading expertise - giving customers a unique blend of talented and experienced individuals, alongside advanced technology and operational excellence.
DRILLING TECHNOLOGY
•Project Management
•Drilling Upgrades & Modifications
•Engineering
•Marine Operations
•BOP systems
•Maintenance Technology
•SPS and yard stay
•EPCI
•Technology Improvement
•AoC process
WELL SERVICES
• Casing Services
• Rental Services
• Tubulars
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International presence
Norway
UK
Holland
Romania
Turkmenistan
Saudi Arabia
Brazil
South Korea
The Philippines
Thailand
United Arab Emirates
Tanzania
Angola
USA
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Odfjell Drilling – chosen for experience and expertise
Vision & Mission
Odfjell Drilling shall be a preferred international ultra deepwater and harsh environment drilling contractor. And provider of engineering and project management services for the offshore drilling industry and high quality and innovative well services
Demand for drilling services
Continued high drilling activity on NCS Offshore well E&P spending – world wide
No. wells drilled
Source: The Norwegian Petroloeum Directorate, Rystad Energy (as of [ ] June 2013)
0
50
100
150
200
250
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
Development wells Exploration wells
-
10
20
30
40
50
60
70
80
90
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Well Service Drilling Tools and Commodities
USDbn
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Side 9
Key issues for IT
Some key issues for IT in Odfjell Drilling
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Cost effective business support through
–Standardisation of business processes, systems and technology
–Global sourcing (vendors with global capabilities)
–Collaboration (Integrated Operations – collaboration tools, video, unified communication…)
–Shared services centre in Manila(IT support and other shared services)
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Integrated Operations
Onshore Operations Model
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•Secure continuity between shifts – ensure consistency in operations
•Experience transfer between operations/installations
•Administrative tasks to onshore to release time for increased and continuous focus on HSE and operations for offshore management
•Integrated planning activities onshore (operations and technical maintenance)
•Improve resource utilization by cross training
•Increased focus on bottlenecks & continuous improvements
Benefit: Optimized number of personnel on board - without compromising safety or efficiency
- Decision based organisation onshore, execution based organisation offshore;
Integrated Operations – IT support
• Technological platform achieve effective collaboration
• Collaboration rooms & Operation centers
– Video conference
– FieldView / CCTV / UHF
– Realtime data
– Smartboards
• MS Lync fully integrated
– Chat (quick and informal communication)
– Presence
– Share Data
– Point-to-point video
– Lync-Lync + Lync-Jabber
• Cisco Jabber
– High end video PC client
– Jabber-Jabber, Jabber–Cisco endpoints + Jabber-Lync
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PC basert videokonferanse
MS Lync
Portable videocameras
CCTV
UHF
Video conference
Realtime data
Collaboration rooms
Web camerasPortable cameras
Cisco Jabber
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Project Global Standard
Standard processes
IFS implementation
ERP evaluation
16
• Why?
– Alternative to further development of in-house-developed system for purchasing, logistics and maintenance
• Scope
– Initially limited to purchasing, logistics and maintenance
– Evaluation extended to covering Finance and HR after IFS was chosen for purchasing, logistics and maintenance
• Business case
– Process improvement and standardization
– Improved business predictability and control
– Industry standard solution
• Best Practices
• Integrated system - ERP
– Support business growth and internationalization
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Why IFS?
August
CW33 CW34 CW35 CW36 CW37 CW38 CW39 CW40 CW41 CW42 CW43 CW44
4.HR3.Logistics
IFS ASSESSMENT (2012)
2.operations
OctoberSeptember
1. Maintenance5.FI/CO + C&T
1. Maintenance
scenarios
• Equipment
Administration
• PM planning
• Work order
execution
2.Operations scenarios
•Project
•Rotation
•Incidents/Audits(HSE)
3.Logistics scenarios
•Procurement
•Inventory
Management
•Shipment
4.HR scenarios
•Human Resource planning
•Employee administration
•Time and Attendance
Reporting
•Pay roll processing
5.FI/CO scenarios
•Supplier Invoicing
•Fixed assets
•Cost controlling
•Project cost controlling
•Contract Management
5.Cross functional
&Technology
•Document Management
•Replication
•Interfaces
•BI (business intelligence)
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PEOPLE
New way of working is implemented and accepted in the organization
PROCESS
Integrated, standard and efficient processes implemented and fit for global roll-out
SYSTEMS
Systems stabile and user friendly, master data's are standardized and governance model implemented
• Involve key personnel from all BU’s in the design phase to ensure high quality, fit-for-purpose solutions
• Provide good and timely information• Monitor and follow up change process• Train and support new users
• Involve key personnel from all BU’s in the design phase to ensure high quality, fit-for-purpose solutions
• Business Process governance structure to be established in design phase
• All changes outside process and solution standard to be approved by BPO
• All processes to be verified globally and cross business process area
• Involve key personnel from all BU’s in the preparations and execution of testing
• Early decision on master data structure and governance model
• Clean up master data prior to implementation of new system
OBJECTIVES INITIATIVES
Project Strategy
The fundamental design principles for establishing the Global Standard in Odfjell Drilling are:
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Global solution and processes
• Applicable for all locations and operations
• Well functioning offshore as well as onshore
• The system shall be intuitive and easy to use
• Universal definition of roles and “lingo”
• Process roles independent of organizational role
Standardization across locations and operations
• Standard process and solution within process areas
• System set-up and user interface is process oriented
• System controlled process steps• Standardized system setup and
user interface• Common master data structure• All exceptions from standard shall
be approved by BPO
Safe and efficient solutions
• Information entered once and as close to the source as possible (avoid duplication and reduced quality of information)
• Avoid manual work steps• Move from handling of transaction
to planning and control• Total efficiency for Odfjell Drilling
superior to efficiency for back-office functions (hopefully not in conflict)
• In compliance with regulatory bodies within our business
• In compliance with requirements related to segregation of duties
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Process & Organization
High level project plan
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GLOBAL STANDARD
High Level mapping
Detailed mapping
Establish solution (system set-up & configuration)
Masterdatadefinition
Masterdata set-up & clean-up
Organization
Procedures & Guidelines
Transition preparations
Go
liv
eG
o l
ive
TrainingTraining
Support & Maintenance of existing solutions Support & Maintenance of existing solutions
Migration StrategyMigration Strategy
Stabilize processesStabilize
processes
InitiateInitiate
t
Q1/13
INITIATE MAPPING SYSTEM SET-UP & PREPARATION IMPLEMENT STABILIZE
Q3/13 Q1/14 Q3/14 Q4/14
Testing & MigrationTesting & Migration
ORGANIZATION & PROCESS
IT SYSTEM
Roll-out Strategy
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Goal
Main goal: Establish a global standard in Odfjell Drilling on how we do
• Maintenance and asset management
• Procurement
• Logistics
• Rental
• Projects
• Finance
This includes:
- Process description of future work processes
- Establish link between IFS process descriptions and Odfjell Drilling process hierarchy
- Universal role definitions
- Changes in organization � governance model + suggested changes future organization of support functions
- Establish and/or update procedures and guidelines to support the new standard
- Establish governance organization
- Train and prepare our organization
- Benefit realization
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Project Maint. Proc. Logist. RentalHR Finance
Procurement - Procure to Pay
From functional orientation to process orientation…
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HR - Hire to Retire
Maintenance - “Acquire to scrap”
Rental – Order to invoicing
Logistics - Order to consumption
Project Control – Prospect to closure/payment
Master Data Life Cycle
Finance – Budget to Reporting
Income flow – Sales order to payment
T1: Odfjell Drilling
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GLOBAL STANDARD
SCMSCM
SUPPORT PROCESSES SCM
CORE PROCESSES SCM
GOVERNING PROCESSES SCM
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PROCESS & SYSTEM GOVERNANCE
LONG TERM PROCUREMENT
PLAN
DEFINE PROCUREMENT
NEEDS (DAY-TO-DAY)
REQUEST & SELECT VENDOR
FOLLOW-UP PROCUREMENT
VERIFY INVOICE
FA & CONTRACT MANAGEMENT
SUPPLIER MANAGEMENT
GLOBAL SCM STRATEGY & PHILOSOFY
PERFORMANCE & RISK MANAGEMENT
SCM
LONG TERM LOGISTICS PLANNING
CUSTOMS CL GOODS RECEIVEDTRANSIT
WAREHOUSINGWAREHOUSING
GOODS & SERVICE TRANSACTIONS
MASTER DATA ADMINISTRATION
SYSTEM SET-UP AND MAINTENANCE
MATERIAL ADMINISTRATION
PROCEDURES & GUIDELINES
PRO
CU
REM
EN
TLO
GIS
TIC
S
TRANSPOR-TATION
GOVERNING PROCESSES SCM
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PROCESS & SYSTEM GOVERNANCE
FA & CONTRACT MANAGEMENT
SUPPLIER & CATEGORY
MANAGEMENT
GLOBAL SCM STRATEGY & PHILOSOFY
PERFORMANCE & RISK MANAGEMENT
SCM
PROCEDURES & GUIDELINES
Process start-point:• Need for changes in
process and/or system• Need for establishment
of process/system
Main Activities:• Evaluate need for
change• Conclude on global
solution• Conclude on local
adjustments• Update Stream
Process Output:• Governing principles
for process and/or system development
• Conclusions on system/process changes
• Regulations of process execution core and support processes SCM
• Updated Stream process description
Process start-point:• Need for changes in
procedures or guidelines
• Need for establishment of procedures or guidelines
Main Activities:• Evaluate need for
change• Establish procedures or
guidelines• Update CMS
Process Output:• Governing principles
for execution of SCM globally
• Updated procedures in CMS
Process start-point:• Need for new contract
or frame agreement
Main Activities:• Long term planning of
contract and FA establishment
• Plan and prepare• Market screening• Negotiations• Benefit realization• Contract follow-up
Process Output:• New contracts and FA’s• Potential savings of
new contracts
Process start-point:• Procurement needs and
existing/new suppliers
Main Activities:• Categorization of
vendors• Market analyzis• Identification and
selection of vendor/category strategy
• Identify strategic vendors and build relations
• Administrate and follow up procurement categories
Process Output:• Enhanced procurement
power• Clarified strategies per
category• etc
Process start-point:• Need for reviewed SCM
strategy
Main Activities:• SWOT analysis• Spend analysis• Supplier and market
analysis
Process Output:• New SCM strategy
Process start-point:• SCM Strategy• Corporate Strategy and
goals• Process and
transaction information
Main Activities:• Assessment of risks
and opportunities• Establish KPIs• Measure and monitor
KPIs• Perform analysis of
spendt, process performance, etc
Process Output:• Risk awareness and
mitigating actions• Performance indicators• Input to action plans
and
CORE PROCESSES SCM - PROCUREMENT
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Process start-point:• New business events
(project, operation, contract) with procurement requirements
• Long term asset plan• Long term operation
plan• Recurring event
Main Activities:• Identify procurement
and investment needs• Plan procurement and
investment• Select sourcing and
procurement strategy• Initiate procurement
activities long lead items according to strategy
Process Output:• Updated long term
procurement plan• Procurement initiatives
ready for start-up
Process start-point:• Long term procurement
plan• Day-to-day
procurement needs
Main Activities:• Define and clarify
procurement scope• Identify procurement
type• Identify and select
procurement strategy •
Process Output:• Procurement scope
(spesification of goods/services, requirements, category, sourcing strategy, etc)
Process start-point:• Clarified procurement
scope and requirements
Main Activities:• Dependent on
procurement type (single source, FA regulated, tailor made, other)
• Establish requesition• Request proposal from
3+ vendors• Prepare and perform
negotiations• Evaluate and select
vendor• Establish and send PO
Process Output:• PO to vendor• Updated procurement
system
Process start-point:• PO to vendor
Main Activities:• Monitor progress of
delivery from vendor• Monitor quality of
deliverables from vendor
• Monitor shipment status
• Evaluate need for VO• Establish and send VO
to vendor• Update status on PO
Process Output:• Updated PO status• VO
Process start-point:• Goods received
Main Activities:• Verification of invoice
according to PO, VO and goods received
Process Output:• Approved invoice ready
for payment• PO/VO closed
LONG TERM PROCUREMENT
PLAN
DEFINE PROCUREMENT
NEEDS (DAY-TO-DAY)
REQUEST & SELECT VENDOR
FOLLOW-UP PROCUREMENT
VERIFY INVOICE
CORE PROCESSES SCM - LOGISTICS
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Process start-point:• New business events
(project, operation, contract) with need for logistics set-ups
• Long term asset plan• Long term operation
plan (contract status)• Recurring event
Main Activities:• Identify logistics needs• Plan changes and
events in logistics structure and organization
Process Output:• Updated long term
logistics plan• Logistics initiatives
ready for start-up
Process start-point:• Need for transportation
of goods
Main Activities:• Define and clarify
transportation scope• Identify transportation
type• Identify need for
customs clearance • Book and perform
transportation• Perform customs
clearance• Follow up
transportation and report progress
Process Output:• Transportation scope
defined• Goods delivered to
agreed point of delivery
Process start-point:• Goods arrived at
agreed delivery point (where
Main Activities:• Check goods received
according to PO• Inspection of delivered
goods• Register goods
received in IFS
Process Output:• Goods received and
registered
Process start-point:• Goods received
registered
Main Activities:• Update warehouse
location• Perform customs
clearance• Store goods in
warehouse• Pick goods from
warehouse according to
• Update system• Clarify goods for
transportation to warehouse
Process Output:• Goods in location• Goods ready for
delivery to warehouse
Process start-point:• Need for usage of
goods or services• Return of goods to
warehouse
Main Activities:• Print pick-list• Pick up goods from
location• Update system with
transactions• Scrapping• Return to vendor• Return to basestore
Process Output:• Goods consumed• Updated status
inventory
TRANSPOR-TATION &
CUSTOMS CLGOODS RECEIVED
TRANSIT WAREHOUSING
WAREHOUSINGGOODS & SERVICE
TRANSACTIONS
LONG TERM LOGISTICS PLANNING
Process start-point:• Goods received
registere
Main Activities:• Update warehouse
location• Perform customs
clearance• Store goods in
warehouse• Update system
Process Output:• Goods in location• Warehouse information
updated in IFS
CORE PROCESSES SCM - LOGISTICS
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Process start-point:• New items• Updated datas• Changes in item
description• etc
Main Activities:• Register new items• Verification of
consistency in master datas
• Analyse quality and validity in data
Process Output:• Updated master data• QA of master data
Process start-point:• New users• New functionality• Agreed changes
(governance)
Main Activities:• Evaluate urgency• Evaluate need for
external assistance• Evaluate need for
traning of new users• Evaluate need for
establishing a project• Assign tasks• Perform tasks• Inform users about
changes• Update user manuals
Process Output:• Updated system
MASTER DATA ADMINISTRATION
SYSTEM SET-UP AND MAINTENANCE
MATERIAL ADMINISTRATION
Process start-point:• New items• Updated datas• Changes in item
description• etc
Main Activities:• Register new items• Verification of
consistency in master datas
• Analyse quality and validity in data
Process Output:• Updated master data• QA of master data
Methodology alignment
Bridging methodology
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TIER1 – Business Units
TIER2 – Value Chain
TIER3 – Process Landscape
TIER4 – BPMN/Process
=IFS: Application Solution
IFS: Main Process
IFS: Key Solution
IFS: Business Solution
GLOBAL STANDARD
Critical path – alignment between IFS and Odfjell Drilling
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Develop customizations, integrations
Establish platform and application
Establish basic dataConfigure application
Train in application solution
Verify solutionEstablish work instr.
Perform AST
Organize, plan and prepare trainingDefine support process and organization
Define and plan cut-overPerform test migrationDefine and plan change management
Critical path – alignment between IFS and Odfjell Drilling
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Develop customizations, integrations
Establish platform and application
Establish basic dataConfigure application
Train in application solution
Verify solutionEstablish work instr.
Perform AST
Organize, plan and prepare trainingDefine support process and organization
Define and plan cut-overPerform test migrationDefine and plan change management
Design future processesDefine rolesConclude on changes (process/org)
Master data cleaningMaster data structure definition
Master data structure definition
Define roll-out strategy
Def. targetsEst. baseline
Way forward
The way forward
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• Further business process improvements and standardization,
• cooperation with IFS and other companies, e.g. Rotation Planning
• Industry Best Practices
• Mobile solutions hand-held devices, usability improvements for travellers
• Tuning of IT service processes (ITIL based)
• Focus on business and IT architecture
• Further development of our shared services centre in Manila
• And always: Continous cost awareness!
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